German Football Finance

Kampfschwein · May 31, 2012

Deloitte has just published its 2012 Annual Review of Football Finance (though German version will only follow in August). Here some of the highlights:

Europe’s premier leagues
• The European football market continued to show resistance to wider economic pressures, growing by 4% to €16.9 billion in 2010/11.
• The ‘big five’ leagues’ revenues grew by 2% to €8.6 billion, with all but Ligue 1 experiencing growth.
Broadcasting revenue was the main driver of growth (up 3%) and now stands at over €4.1 billion,
followed by commercial revenue up 5%, and partly offset by a 2% decrease in matchday revenue as clubs adapted pricing strategies to deal with the difficult economic environment.
• The Premier League remains by a distance the highest revenue generating league at €2.5 billion in 2010/11 and recorded the highest revenue growth of any of the ‘big five’ leagues in local currency of 12% (£241m). Further depreciation of Sterling against the Euro meant that the gap to the second highest revenue generating league, the Bundesliga, narrowed slightly to €769m.
• The Bundesliga’s revenue grew 5% to €1,746m. Its clubs lead the way in terms of commercial revenue (€816m) and average attendance (42,100). The additional Champions League spot for Germany from 2012/13 and 50% uplift in domestic league broadcasting rights from 2013/14 will help continue the Bundesliga’s impressive recent revenue growth and will secure its status as the Premier League’s closest rival in revenue terms.
• La Liga revenues grew by 5% to €1,718m. This was again driven by Real Madrid and FC Barcelona, who achieved a combined €93m (11%) increase in revenue. The remaining 18 La Liga clubs suffered a cumulative decrease of €19m (2%). The top two clubs now generate 54% of total La Liga revenue.
• Serie A’s revenues increased by 1% to €1,553m leaving it in fourth place of the ‘big five’ leagues.
The return to collective selling of broadcasting rights delivered revenue growth, whilst the distribution model helped balance the revenue more evenly among clubs.
• Ligue 1’s €32m (3%) drop in revenues to €1,040m was largely as a result of weaker Champions League performance by its clubs in 2010/11. Nonetheless, Ligue 1’s revenue is now over €500m less than the fourth highest league, compared to a difference of only €32m 10 years ago. Its total revenues are now closer to Russia in sixth, than Italy in fourth. French clubs need to capitalise on the revenue opportunities through stadium developments being carried out for Euro 2016.
• Football’s greatest business challenge remains cost control. The ‘big five’ leagues’ wages increased by over €104m (2%) to exceed €5.6 billion in 2010/11. Encouragingly this was less than revenue growth and the overall wages/revenue ratio improved. Nonetheless, greater restraint will be required by some clubs in order to comply with UEFA financial fair play regulations.
• Whilst the Premier League has the highest wage costs at €1,771m in 2010/11 (over €600m higher than the next league). Serie A and Ligue 1 have the highest wages to revenue ratios, both at 75%.
• The Premier League and the Bundesliga were the only ‘big five’ leagues to achieve operating profits in 2010/11. The Bundesliga (€171m) substantially increased the gap over the Premier League (€75m). Losses in Ligue 1 decreased marginally to €97m.
• Russia (€614m), Turkey (€515m) and the Netherlands (€431m) are the clear next biggest top tier revenue generating leagues. England’s Football League Championship is the world’s highest revenue
generating second tier league, with revenues of €468m.
• In contrast to the majority of the ‘big five’ leagues, commercial revenue is the largest contributor to the majority of non ‘big five’ leagues’ revenues. The Russian club model is particularly driven by
commercial contributions, with Turkey having a much higher broadcasting value (44% of total).
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I wonder how long La Liga will be able to sustain strong duopolist growth while the rest of the league contracts. In any case, considering Germany's strong economy, more CL berths and the strong media rights 52% growth, the Bundesliga's going to further leave La Liga and Serie A behind in the coming years.

If Germany were to win EURO 2012 that would also accelerate non-domestic media rights growth, which is as yet very low and a largely untapped growth potential.

Skippysasquirrel · Jun 1, 2012

Kampfschwein said: ↑

If Germany were to win EURO 2012 that would also accelerate non-domestic media rights growth, which is as yet very low and a largely untapped growth potential.
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Meaning maybe we would see more Bayern and Gladbach, less Leeds and Millwall?

Lupin III · Jun 18, 2012

Kampfschwein said: ↑

Deloitte has just published its 2012 Annual Review of Football Finance (though German version will only follow in August). Here some of the highlights:

I wonder how long La Liga will be able to sustain strong duopolist growth while the rest of the league contracts. In any case, considering Germany's strong economy, more CL berths and the strong media rights 52% growth, the Bundesliga's going to further leave La Liga and Serie A behind in the coming years.

If Germany were to win EURO 2012 that would also accelerate non-domestic media rights growth, which is as yet very low and a largely untapped growth potential.
Click to expand...

There is no doubt that the pressure in future will be on La Liga. French Ligue 1 will have bigger economy after 2016, Russia after 2020 and Turkey will win on....... Serie A will probably gain some also since it seems with Juves new ground the clubs has realized they need to be more modern. I could also imagine if Poland would in future (next 20 years) move up on dutch level.

Guess how Buli2 and 3.Liga is in comparison, Buli2 has similar crowd size as english Championship League.